Ubiquiti (NYSE:UI) Stock Price Up 6.2% - Still a Buy?

Key Points

• Ubiquiti shares rose 6.2% to about $602.75, although trading volume was 69% below the average session level.
• Analyst opinions are mixed, but the stock carries a consensus “Moderate Buy” rating with an average price target of $734.50; targets range from $489 to $980.
• Ubiquiti exceeded quarterly expectations, reporting $4.73 in EPS and $937.32 million in revenue, while raising its quarterly dividend from $0.80 to $1.00 per share.

Shares of Ubiquiti Inc. (NYSE:UI - Get Free Report) rose 6.2% during trading on Thursday. The stock traded as high as $598.08 and last traded at $602.7460. Approximately 36,921 shares were traded during mid-day trading, a decline of 69% from the average session volume of 120,577 shares. The stock had previously closed at $567.53.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on UI. Zacks Research upgraded Ubiquiti from a "hold" rating to a "strong-buy" rating in a report on Friday, September 18th. Weiss Ratings downgraded shares of Ubiquiti from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, August 21st. Barclays dropped their price objective on Ubiquiti from $672.00 to $489.00 and set an "underweight" rating on the stock in a report on Monday, August 24th. Finally, BWS Financial reissued a "buy" rating and set a $980.00 price objective on shares of Ubiquiti in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $734.50.

Ubiquiti Stock Performance

The company has a 50-day moving average of $567.60 and a 200-day moving average of $661.93. The stock has a market cap of $36.60 billion, a price-to-earnings ratio of 38.26 and a beta of 1.31.

Ubiquiti (NYSE:UI - Get Free Report) last issued its quarterly earnings results on Friday, August 21st. The company reported $4.73 earnings per share for the quarter, topping the consensus estimate of $4.03 by $0.70. Ubiquiti had a return on equity of 85.57% and a net margin of 29.33%.The firm had revenue of $937.32 million during the quarter, compared to the consensus estimate of $850.50 million. During the same period last year, the company earned $4.41 earnings per share. As a group, equities research analysts forecast that Ubiquiti Inc. will post 16.94 EPS for the current year.

Ubiquiti Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 31st were issued a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 0.7%. This is an increase from Ubiquiti's previous quarterly dividend of $0.80. The ex-dividend date of this dividend was Monday, August 31st. Ubiquiti's dividend payout ratio is 25.24%.

Institutional Investors Weigh In On Ubiquiti

A number of hedge funds and other institutional investors have recently modified their holdings of UI. Corient Private Wealth LLC boosted its position in Ubiquiti by 73,940.4% during the fourth quarter. Corient Private Wealth LLC now owns 1,113,568 shares of the company's stock worth $616,193,000 after purchasing an additional 1,112,064 shares in the last quarter. BlackRock Inc. acquired a new position in shares of Ubiquiti during the 2nd quarter worth approximately $163,010,000. Arrowstreet Capital Limited Partnership increased its position in Ubiquiti by 11.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 183,464 shares of the company's stock worth $101,520,000 after buying an additional 19,504 shares in the last quarter. Capital World Investors lifted its position in shares of Ubiquiti by 16.2% in the fourth quarter. Capital World Investors now owns 100,056 shares of the company's stock valued at $55,366,000 after acquiring an additional 13,970 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Ubiquiti in the 2nd quarter valued at about $30,086,000. 4.00% of the stock is currently owned by institutional investors and hedge funds.

Ubiquiti Company Profile

Ubiquiti Inc develops and sells networking technology for businesses, service providers and consumers worldwide. The company designs products intended to deliver wireless connectivity, network management, security and other communications capabilities, with an emphasis on scalable and easy-to-deploy solutions.

Its product portfolio includes wireless access points, routers, switches, gateways, broadband wireless equipment, network management software, video surveillance systems, security and access-control products, and smart-home devices.

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